Sensex up 506 points as foreign inflows resume
Logging its biggest rise in over a month, the benchmark BSE Sensex on Friday surged by 506 points to 27,105.39 points on government's move to mollify overseas investors' taxation worries and rupee's recovery.
Firm global stocks tracking UK election result, fall in Brent oil prices, value-buying in domestic beaten-down stocks helped Sensex recover from 6-1/2 months low, traders said. On weekly basis, the 30-share Sensex recovered by 94.08 points or 0.35 per cent, to snap three weeks of losses.
"Sentiments got some support with Finance Minister Arun Jaitley announcing a high level committee, which will give its recommendations on the issue of imposition of MAT on foreign investors," Jayant Manglik, President of retail distribution at Religare Securities said.
Snapping three days of losses, the BSE Sensex resumed on a strong footing and quickly recaptured the crucial 27,000-mark to touch the day's high of 27,196.28. It finally closed at 27,105.39, a jump of 506.28 points or 1.90 per cent. Previously, it had soared by 517.22 points on March 30.
Rs rebounds from 20-month low, up 29p against $
Snapping its 5-session losing streak, the rupee on Friday gained 29 paise to 63.94, recovering from a 20-month low against the American currency on fresh selling of dollars by banks and exporters amid rebound in equities.
The rupee resumed higher at 64.13 as against the last closing level of 64.23 at the Interbank Foreign Exchange market and firmed up further to a day's high of 63.90 per dollar before concluding at 63.94, showing a gain of 29 paise. On Thursday, the domestic currency had dropped by 69 paise or 1.09 pct to 20-month low to 64.23 per dollar. The rupee had also dropped by 108 paise 1.71 pct
during the last five days. The rupee hovered in a range of 63.90 and 64.17 during the day.
Exporters and banks preferred to reduce their dollar position on hopes of resumption of foreign capital inflows on the back of recovery in the equity market. In the New York, the dollar stuck in range against most of its major rivals.